MANUAL 

OF 

Goldwyn BrancK Operations 

h 

E. SCHAY 



January 1920 



Scanned from the collections of 
The Library of Congress 




Packard Campus 
for Audio Visual Conservation 
www.loc.gov/avconservation 

Motion Picture and Television Reading Room 
www.loc.gov/rr/mopic 

Recorded Sound Reference Center 
www.loc.gov/rr/record 



MANUAL 

OF 

Golckryn BrancK Operations 

by 

E. SCHAY 



January 1920 



COPYRIGHTED 1920 



MAR I r , ^ 

©C1A5G4524 

MAR 16 1920 



SYSTEM -|- COOPERATION = EFFICIENCY 



About a year ago a memorandum with general instruc- 
tions on branch accounting, was forwarded to you explain- 
ing the use of the different forms and such details as were 
necessary to properly record transactions occurring in our 
branches. The system then in existence still prevails 
although it has been found necessary to introduce changes so 
as to make it conform to present conditions. 

A number of new forms have been added to those which 
were used a year ago, in regard to which you have received 
letters explaining their use. 

The purpose of this booklet is to eliminate the necessity 
of going through considerable past correspondence, and to 
have a reference book at hand which will explain the use of 
all forms at present employed by our branches. 

CONTRACTS 

1. When business is secured the exhibitor is required to 
sign a contract. Form No. 300 is used for first, second, or 
third year Goldwyn, Bennison, Capitol Comedies and 
Extras. There is a special contract form designed for Manx- 
man contracts. Also a special form for Ford contracts. 
Form No. 301 is used for Goldwyn Bray Pictograph 
business. 

Contracts covering THIRD YEAR PRODUC- 
TIONS should be written on a separate form, and subjects 
of other years or other productions must not be included. 

2. All contracts are made out in triplicate, the three copies 
together with a CONTRACT MEMO (the use of which 
will be explained later) should be sent to the Home Office 
for approval, after which two of the copies will be returned 
to you, namely the branch and exhibitor's copies. The 
branch forwards the exhibitors copy to the proper party, 
retaining the other copy for its records. 

The contract is the basis of our business relations with the 
exhibitor and consequently care must be exercised that all 
requisite details are properly attended to. 

3. No contract should be sent to the Home Office if it con- 
flicts with a previous contract with the same exhibitor, or 
with another theatre for the same service. In such case a 
CANCELLATION NOTICE for the previous contract 
should be issued, as it is obvious that no" contract can be ap- 
proved the terms of which are in violation of the other con- 
tract still active according to our records. 

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4. When a contract is forwarded to the Home Office, a 
duplicate of the CONTRACT MEMO is retained by the 
branch as a record of the closed contract. These memos are 
not filed permanently until the contract is returned, conse- 
quently those in the folder represent contracts still in transit 
between the Home Office and branch. If a contract is not 
returned within a reasonable time, inquire from the Home 
Office in regard thereto. 

5. Be sure to mention the SALESMAN'S name at the top 
of each contract in the proper space. We are interested in 
each salesman and keep a record of his activity. 

6. At the time of securing a contract, certain UNUSUAL 
LOCAL CONDITIONS may exist, or other factors may 
have had influence on the contract submitted which you 
might assume to be unknown to the Home Office. In such 
instances we expect you to inform us fully by letter. This 
will eliminate the necessity of inquiring from you before we 
approve the contract, thus saving time for both of us. 

7. We have found from past experience, that it is frequent- 
ly necessary to return CONTRACTS which are lacking in 
COMPLETE DETAIL. Therefore be sure to have the 
contracts checked before sending them to the Home Office, 
as otherwise time is wasted. 

The following routine may be found useful in check- 
ing: 

CHECK: 

A. Signatures of the manager on all copies of the contract 
and cancellation rider. 

B. Signatures of exhibitor on all copies of contract and 
cancellation rider. 

C. Number of pictures of each series contracted for. 

D. Contract number, key number, name of the theatre, 
playing dates, release number with which service is to 
start, number of days service is to be used, contract 
payment. 

E. The productions contracted for must be specified in the 
proper space provided therefor, (whether first, second 
or third year) . 

The following instructions should be communicated to 
all salesmen to serve as a guide in filling in the proper in- 
formation on contract forms: 

1st. Do not fail to fill in the date of signing the agreement, 
on the first line. 



2nd. In paragraph "First," the blanks in "During the year 
19 — 19 — " should be filled in, for example, if the con- 
tract is for service commencing in 1920, it should read 
as follows : "During the year 1920—1921." 

3rd. Fill in the proper date under all column headings of 
schedule in paragraph "First." Be particularly sure 
to furnish the information in "Productions of — year." 
As for example, "Productions of second year." 

4th. The contract is only valid if the exhibitor signing it 
has authority to do so. In the case of a partner- 
ship, he must be a member of the firm. In the case of 
a corporation, he must be an officer thereof. 

5th. Contracts may be signed by exhibitors: (A). As an 
individual by only signing his name. (B) . As a part- 
nership for instance — Jones & Smith, Exhibitor, by 
John Smith. (C). As a corporation — The Strand 
Co., Exhibitor, by John Doe, Vice-President. 

6th. It is self-evident that the exhibitor should appear 
under one name in a contract, consequently the same 
name must be given as the owner or lessee at the top 
of the page, and as the signature at the bottom of the 
page. 

7th. Rubber stamps will only be accepted for signature in 
the case of a partnership or corporation when a mem- 
ber of the firm or officer of the corporation signs his 
name in ink. 

8th. Lead pencil signatures will not be accepted. 

We give below the NUMBER OF PICTURES of each 
series which have been released during season 1918-1919. 



Farrar 4 

Beach 4 

Frederick 4 

Normand 6 

Marsh 4 

Kennedy 6 

Moore 7 

Bennison 6 



No CONTRACT goes into effect until the Home Office 
has approved it, and this means that no prints are to be sup- 
plied to any theatre until then. 

If an exhibitor requires a booking on subjects, when 
there is not sufficient time (before the picture is to 
be played) for the contract to be sent to the Home Office 



for approval and return, then the matter must be submitted 
to the Home Office by telegraph, and approval secured be- 
fore the playing date is accepted or the print delivered to 
the exhibitor. 

10. CONTRACTS FOR CAPITOL COMEDIES may 
include both first and second year series on one form, but 
they should be listed as separate items and not referred to 
as 52 Capitol Comedies. 

11. The MANXMAN CONTRACT is to be made out in 
quadruplicate. All four copies should be sent to the Home 
Office for approval. As mentioned before they are to be 
written on a special form. "Manxman" contracts should 
never be included among any other business signed up for 
the same exhibitor. 

12. FORD CONTRACTS are written in quadruplicate and 
subject to the Manager's approval only, consequently for- 
ward two copies ("Executive Office" and "Producer's 
Copy") to the Home Office. 

13. The GOLDWYN BRAY PICTOGRAPH CON- 
TRACT is made out in triplicate and is subject to the man- 
ager's approval, therefore, only the "Executive office" copy 
should be sent to the Home Office. Such contract to be ac- 
cepted only if a two weeks' contract payment is made, the 
amount thereof being specified in the contract. 

CANCELLATION RIDERS 

14. This is a special rider to be used when the contract is 
subject to cancellation. The number of pictures to be used 
before cancellation becomes effective, should be decided 
upon at the time the contract is taken. Contracts which do 
not contain this rider cannot be cancelled by either party. 

CHANGE OF OWNERSHIP 

15. When a theatre using service is sold, it is necessary to 
either secure a new contract from the new owner and issue 
a cancellation for the previous contract or to secure an agree- 
ment of assignment of contract, which reads as follows : 

"Agreement made this ....... day of 192. . 

between of hereinafter 

referred to as the 'Exhibitor' and . .-. . . . ... of 

hereinafter referred to as the 'Purchaser.' 

Whereas the exhibitor has sold and transferred his 

theatre known as ....... at to the 

purchaser 



—4— 



Now therefore in consideration of the sum of $1 law- 
ful money of the United States by each of the parties hereof 
to the other in hand paid it is agreed as follows : 

Exhibitor sells, assigns, transfers and sets over unto the 

purchaser contract number dated with 

Goldwyn Distributing Corporation for the right to exhibit 
the certain motion picture prints therein provided for to- 
gether with all his right, title and interest thereunder and in 

the sum of $ the payments in advance provided 

f or in said contract. The purchaser hereby assumes the 
aforesaid contract and agrees to carry out each and every 
term and condition thereof on the part of the exhibitor to be 
performed and the exhibitor shall and hereby agrees to be 
bound on said contracts hereafter as surety. 

In witness whereof the parties hereof have hereunto set 
their hands and seals the day and year first above written. 



Exhibitor 



Purchaser 

Goldwyn Distributing Corporation consents to the assign- 
ment referred to above on the condition that such consent 
shall not be a waiver except in this particular instance of the 
prohibition contained in the aforesaid contract against the 
assignment thereof without the consent of said Goldwyn 
Distributing Corporation in writing first had and obtained. 
Date 19 

Goldwyn Distributing Corporation. 

By 

Branch Manager. 

Approved at New York City. 

Dated 19. . . . 

Goldwyn Distributing Corporation. 

By " 

CHANGES IN CONTRACT 

Changes in contracts referring to price, playing date, 
length of run, etc., must be reported to the Home Office and 
approval obtained. As no form is provided for such noti- 
fication, the matter should be arranged by correspondence 
giving full particulars. In other words, the information at 
the Home Office must agree with the actual conditions con- 
cerning all details of each contract. 



CONTRACT MEMO 



17. Use form No. 210 for Extras. Form No. 284 for first 
year Goldwyn, second year Star Series, Bennison and Cap- 
itol Comedies. Form No. 298 for third year subjects only. 
The information to be furnished on this form is self-explan- 
atory. It is essential that the proper forms are used for the 
contracts as mentioned above. 

CONTRACT MAILING NOTICE 

18. Form No. 296 is the memorandum which accompanies 
the contract when it is forwarded to the Home Office. Its! I 
use is fully explained on the form itself. 

CANCELLATION NOTICE 

19 - Use form No. 114 for first year Goldwyn, Capitol 

Comedies, Goldwyn Bray Pictographs and Extras. Use 
form No. 269 for second year Star Series, third year subjects 
and Bennisons. The latter form will be replaced by a new 
one (form No. 304) which will be sent to the branches when 
the supply of 269 is exhausted. All information asked for 
must be given in order to provide necessary data for Home 
Office records. This refers particularly to the number of 
pictures cancelled, the number of pictures used, the reason 
for cancellation, and the prospects of replacing the contract. 
Cancellation notice 269 has a column headed "Last produc- 
tion shown." This should be interpreted "How many pic- 
tures have been used," and information is to be furnished 
accordingly. When you report the number of pictures used 
it is not necessary to mention the production number, but fill 
in "one" "two" etc., meaning the number used in each series. 

20. When a CONTRACT EXPIRES, the Home Office 
must be notified. The above mentioned cancellation notice 
form is to be used, but it should clearly state under "reason 
for cancellation" — "Contract expired." 

: i\ 

21. All terms of a contract must be properly carried out. 
This refers especially to the collection of the CONTRACT 
PAYMENT, (the amount of which is stipulated in the 
contract.) 

After discussing contracts and assuming that the exhib- 
itor has signed up with us, we shall explain the next steps. 

CONTRACT ANALYSIS AND CUT-OFF SHEET 

22. As soon as a contract is returned approved by the Home 
Office, an analysis is made and entered on contract analysis 

—6— 



and cut-off sheets, (forms 153 and 154, which take the place 
of all other billing and cut-off sheets previously used.) One 
set is made out for each exhibitor using our service, and any 
information on account of contracts previously secured, must 
be transferred to the present form, so as to have one complete 
record containing all transactions with each exhibitor. 

These cut-off sheets should also be used for recording 
service rendered to exhibitors who are not now on our active 
list, as such information may be of great value to your Sales 
Department for reference and follow-up. 

It is, of course, important that all details connected with 
these forms be adhered to. The best system will fail if 
routine pertaining thereto is not strictly followed. When 
the bookings are entered the SKIPPED RELEASES will 
stand out prominently and can readily be followed up by the 
booker as well as the manager. If a manager accepts the 
refusal of an exhibitor to play a certain production, an in- 
voice should be prepared and offset by a credit memo stating 
the reason. As soon as bookings are entered on the BOOK- 
ING SHEETS, (the use of which will be explained later 
on), the dates should be entered by the booker on the cut-off 
sheet in the proper column. The BILLER also uses this 
record when making out bills, noting the date that the in- 
voice has been rendered in the column designed for this pur- 
pose. To avoid having unwieldly records, these sheets should 
be kept according to "active" and "inactive" customers by 
taking the sheets of cancelled customers from your current 
file, thus saving the time of both the booker and biller. If it 
is not possible to keep "inactive" sheets at the back of the 
"active" binder, a transfer binder should be secured from 
the Home Office. 

PLAYING DATES 

The next step after the analysis of a contract has been 
made is the allotment of playing dates. For this purpose 
"NOTICE OF EXHIBITION DATES" form No. 247 
or revised copy No. 149 (which is self-explanatory,) is sent 
out to the exhibitor advising him that a production has been 
set aside for his use on a specified date which he is to con- 
firm. It is essential that an exhibitor should always be 
booked up several weeks in advance. The third (yellow) 
copy of this notice is sent to the Home Office so that press 
sheets and advertising matter can be supplied by the Service 
Department. 



Let us assume that the exhibitor has sent in an acknowl 
edgement of the exhibition date. On receipt thereof th 
booker enters this date on the booking sheets (form No 21 
and 215.) 

BOOKING SHEETS 

The booking sheet is divided into columns headed by the 
name of the pictures, star, and release date. Likewise th< 
number of each print received by the branch is given. On( 
line is to be used for each print of each subject. Under the 
days of the week must be entered the particular day of the 
month. The entries on the same line with "title," "star 
etc., apply to the first release listed. After this it I 
necessary to insert the dates pertaining to the next releases 
All dates must be listed so that Sundays are entered in the 
first column. By drawing a red line over and under the 
dates inserted across the page it will be easy to distinguish 
between the various releases. As soon as the booking is made 
the KEY NUMBER of the Exhibitor must be placed aftei 
the feature in the column representing the date on which ii 
is to be used. If it is necessary to ship a day in advance an 
A mark should be made in the space allotted to that da> 
which indicates that the production cannot be used in an\ 
other theatre. The same applies, of course, for the time re 
quired in getting the film back from the exhibitor. A cir 
cuit should be designated by parenthesis ( ) and time re 
quired for transit of film by "X." 

A blue check mark should be made when the booker 
^Wc he u booking on CONTRACT ANALYSIS 

j ve descnbe d. A red check mark should be 

made when the booker makes up his DISTRIBUTION 
SHEET to be explained later. All bookings must be 
checked in both colors. The booker is to be held responsible 
for this. 

By the way, the writer has seen booking sheets with 
color schemes dazzling to the eye! The colored pencil 
marks were made right across the page and often obliterated 
the key numbers. To achieve the proper result namely, to 
indicate that a certain routine has been followed, it is mere- ' 
ly necessary to make the check marks in the corners of the 
square where the key number is entered, (e.g. the blue 
mark in the right upper corner.) It is important that the 
booking sheets be kept clean and neat looking, and every 
booker should personally see to this. 

Under no conditions are any booking sheets to be des- 



troyed. Old sheets may be taken out of the current binder 
and placed in transfer binder and stored in a safe place. 

When placing insert sheets in your transfer binder it 
will be necessary to mark the name of the productions on the 
proper lines so that same can be identified. Sheets must 
always be filed in the same order as they originally appeared 
in the current binder. 

Also remember that the booking books should be put in 
a safe place at night, and should not be left in the booking 
room when not in use after hours. 

DISTRIBUTION SHEETS 

The distribution sheet (form No. 267 or revised form 
No. 315) has been mentioned before in connection with the 
booking record. This form is prepared daily by the booker 
for shipments to be made on the following day. The num- 
ber of the print to be shipped must be listed in the space on 
the top of the form and the production numbers down the 
sheet. The form should be ruled so as to contain 
as many releases as possible. Key numbers only are 
inserted by the booker indicating which print of a release 
is booked to the e xhibitor. The shipper uses the dis- 
tribution sheet in connection with the fourth (pink) copy 
of the FILM INVOICES, as will be explained later on. 

INVOICES AND BILLING 

Bills for service are made out two or three weeks in ad- 
vance. The work should be divided so that the biller is not 
required to devote a full day's time to the week's charges, 
but should be distributed over several days to make it pos- 
sible to keep up with other current records. 

Practically all information for branch and Home Office 
records is obtained from the carbon copies. Be sure that 
they are legible (including the last copy.) On the Egry 
machine a hard pencil (No. 3) should be used. 

FILM INVOICES 

Film invoices are made up from the CONTRACT 
ANALYSIS SHEETS (form No. 153 and 154.) 

Particular care must be taken to give the correct key 
number, for the reason that posting to the ledger and 
FORMS B and C are based thereon. It is likewise impor- 
tant to state the correct release number, in addition to the 
name of the subject. Before an invoice is sent to an exhib- 
itor, price, extensions, etc., must be checked. It is well 

—9— 



known that an incorrect price means either a smaller pay- 
ment than the one stipulated in the contract and a great deal 
of trouble in collecting the balance due, or heated corres- 
pondence from your customer when overcharging him. 

Four copies of each invoice (Form No. 76) are pre- 
pared: The original (white) is sent to the exhibitor, the 
Home Office copy (yellow) together with the bookkeeping 
department's copy (blue) is filed in a Bushnell's 1 to 31 
file under the day on which a subject is to be used. The 
fourth copy (pink) is to be given to the shipper who files 
it in a BushnelPs 1 to 31 file under the date that shipment 
is to be made. (In typewriting the bills the carbon should 
be cut so that the amount of the charge is not shown on the 
fourth or shipper's copy). 

30. If the exhibitor, (due to circumstances beyond his con- 
trol) CHANGES THE PLAYING DATE from the one 
originally agreed upon, and the branch manager consents, 
the Booking Department has to change the BOOKING 
RECORD and the CUT-OFF SHEET (form No. 153) 
and in the event that the exhibitor has been billed, notifies 
the Billing Department to change the date of the bill, in 
which instance the yellow and blue copies will have to be 
re-filed properly. At the same time care must be exercised 
to see that the shipper's (pink) copy is changed accordingly. 

31. If this change of playing date occurs during the week 
the exhibitor was supposed to play, and the amount 
has been charged to the exhibitor's account, a transfer should 
be made on FORM "H" under the heading of DE- 
FERRED PLAYING DATE, provided the manager 
agrees to the change and the exhibitor is to play the subject 
later on. If he is not to rebook the picture, the charge must 
be cancelled by a CREDIT memo and not by a transfer on 
a H." As it is assumed that the film charges for the current 
week either have been posted or are in process of being 
posted to the ledger, it is not considered desirable to disturb 
the routine of posting, consequently the entry on form "H" 
will serve as a credit against this particular charge. 

32. If the branch manager is not willing to agree to this 
change, then the exhibitor should be billed in accordance 
with his first agreement irrespective of the fact whether he 
actually accepts service on that date or not, and the charge 
becomes an account receivable and should be collected by 
the branch the same as if the service had been rendered. It 
is optional with the branch manager to give this exhibitor a 
chance to play the picture at a later date without billing him 

—10— 



for the show. An instance of this kind should be properly 
marked in the ledger by a memorandum (D. P. D. — De- 
ferred Playing Date) to enable you to reconcile shipping, 
billing, and In and Out records. 

REPEAT DATE ORDERS 

3. When a theatre plays a production beyond the time stip- 

ulated in the contract, Repeat Date Order form No. 93 is 
prepared upon which the necessary information should be 
entered. 

The customer will be billed on film invoice (form No. 
76) and the charge reported upon form "B" in the usual 
manner. 

The original or white copy of form No. 93 is to be mailed 
to the exhibitor if he wishes same, otherwise it is to be des- 
troyed. 

The duplicate or yellow copy of the form will be at- 
tached to the yellow copy of invoice form No. 76 which is 
forwarded to the Home Office. 

The triplicate or blue copy is to be attached to the blue 
copy of form No. 76, which is filed by the branch. 

If a shipping ticket is not necessary, the pink copy of 
form No. 76 should be destroyed. 

PERCENTAGE CONTRACTS 

$4. Pevcentage contracts are to be handled in the following 

manner: 

1. The usual contract is to be made out giving full par- 
ticulars as to the agreement. 

2. ACCESSORIES furnished GRATIS or at reduced 
rates must be charged to the exhibitor's account at regu- 
ular prices. 

3. Any expense paid out of the working fund in connection 
with the EXPLOITATION of the picture must be re- 
ported on form "N" in the usual manner with a notation 
referring to the theatre and picture played. Such ex- 
penses are to be charged to the exhibitor's account by an 
entry on form "B" on the regular invoice, no copy being 
sent to the exhibitor. 

4. The film rental charge to be put through on a regular 
invoice when settlement is made with the theatre is the 
net amount after deducting accessories and expense 
items, less 5% film rental tax. In order to arrive at the 
film rental charge which will aggregate the net amount 
above referred to when the tax is added, you multiply 



—11— 



the net figure by .95238. Assuming that our share of the 
receipts is $1250, that the accessories given away 
amount to $50, and the exploitatiton expense, $200, 
this leaves a net figure of $1,000 for film rental plus 
5% tax. You then multiply $1,000 by .95238 which 
gives $952,38 as film rental and 5% thereof equals 
$47.62, aggregating the $1,000 above referred to. 
5. The collection is analyzed on form "E" in accordance 
with the charges, entering expenses in the Miscellaneous 
column. 

FILM CREDITS 

35. A credit memo (form No. 77 or a revised form No. 148) 
is only prepared if an allowance is made, i. e. a. reduction in 
price ( from the one called for in the contract) — such as may 
be caused by the late arrival of film. ALLOWANCES 
must be clearly distinguished from DEFERRED PLAY- 
ING DATES, the former representing a loss, whereas 
the latter defers the income from the originally scheduled 
date to a later one. 

36. It may become necessary to prepare both a credit memo 
and a transfer on form "H." For example: 

A shipment may not reach an exhibitor on time and he 
has a dark house. If the exhibitor is willing to use the sub- 
ject later, the original charge must be transferred on form 
"H" under "Deferred Playing Dates." But if he will not re- 
book the subject the charge must be cancelled by a credit 
memo. 

37. If the manager agrees that the exhibitor is entitled to 
be indemnified for his loss by giving him another picture 
gratis, a credit memo must be issued with full explanations 
crediting the production originally billed. 

At the time this other picture is shipped and an invoice 
prepared (without forwarding the white copy to the ex- 
hibitor) an entry has to be made on form "H" transferring 
the credit originating from the "Deferred Playing Date" 
to the production now furnished. 

38. Never use a credit memo for charging off a BAD 
DEBT. Such cases should be referred to the Home Office 
for further disposition. DUPLICATE CHARGES must 
be reversed by a transfer on "H" and not by a credit memo. 

39. Allowances must be shown on the same form as the 
original charge. Therefore any credit offsetting a charge 
in connection with film service and which is billed on a film 



—12— 



invoice is to be credited on a film credit form. All postage 
and express credits must be listed on form "B." 

To obtain the necessary information at the Home Office 
it is important to analyze a credit memo giving similar data 
as in the case of invoices. In addition thereto, you will have 
to explain the reason for issuing the credit. Each credit 
memo is to be approved by the branch manager. The white 
copy is sent to the exhibitor (if required, otherwise it is to 
be destroyed), the yellow copy is forwarded to the Home 
Office, and the pink copy is retained by the branch. 

ACCESSORY INVOICES 

For the purpose of billing accessories an Egry register 
is used which should be placed in your Poster Department 
and operated by your poster clerk. Invoices must be made 
out for accessories shipped, not for accessories ordered. This 
is essential as many a dispute with exhibitors has arisen over 
accessories billed, but not shipped. 

For accessory invoices, form No. 80, is used, on which 
only one subject can be listed, or revised form No. 286 on 
which six different subjects may be entered by production 
number unless you use two or three columns for each sub- 
ject so as to have room to write the name of the release in full. 

If accessories are shipped parcel post, or if any addition- 
al expense is incurred, such items may be added to the 
charge for accessories by properly identifying them in the 
item column. 

As soon as the bill is made out, three copies are given to 
the Bookkeeping Department. After checking the prices 
and addition, the original (white) is sent to the customer, 
the Home Office copy (yellow) and the branch copy (pink) 
are filed together until Thursday when the posting of the 
ledger is done and FORM "C" made up. The handling 
of these invoices will be discussed later when form "C" is 
taken up in detail. 

POSTER CREDITS 

The same remarks regarding film credits hold good for 
poster credits (Form No. 81 or revised form No. 150.) 
Give the same details as required on the poster invoices and 
state reason for making the allowance. The credit is to be 
approved by the branch manager. 

—13— 



CHARGES FOR EXPRESS, POSTAGE AND 
MISCELLANEOUS 

45. Charges that arise from the shipment of film or acces- 
sories, and any other miscellaneous charges, such as tele- 
phone used by an exhibitor, or in his interest, are to be added 
to Film or Accessory Invoices, thereby eliminating the 
necessitty of making out a special invoice for miscellaneous 
charges. Charges for postage which were not billed on 
accessory invoices are to be taken from the SHIPPER'S 
POSTAGE BOOK while the express charges are kept in a 
RETURN EXPRESS BOOK and from there billed to the 
exhibitor. These records will be explained later. 

A separate invoice (form 76) for miscellaneous items is 
to be prepared in the event that no film or accessory invoice 
is made out for an exhibitor. The fourth (pink) copy of 
such invoice is to be destroyed. The second and third copies 
are to be kept together for posting to the ledger and listing 
on FORM "B" which will be discussed later. 

Charges for DAMAGED FILM, DELAYED SHIP- 
MENTS, etc., are made up on invoice No. 76. In these 
cases the shipping department copy is destroyed. 

SHIPPING 

46. After the biller has made out four copies of the film in- 
voice (form No. 76) and the bookkeeper has checked it as 
to the correctness of key number, release number, amount, 
etc., the fourth copy is turned over to the shipper who 
files it in his Bushnell 1 to 31 file, according to the date when 
shipment is to be made. 

From this file the shipper takes all invoices for the dav 
and compares them with the DISTRIBUTION SHEET 
which he has received from the booker. It is the shipper's 
duty to see to it that no shipments are made that are listed on 
the distribution sheet for which he has not received the pink 
copy of an invoice, nor must there be any shipping ticket for 
an exhibitor without the corresponding entry on the dis- 
tribution sheet. 

47. The shipper must carefully observe the rule that no ship- 
ments are to be made from anything but the regular pink 
carbon copy of the film invoice. Any deviation from this 
rule might cause a loss of revenue on account of film shipped 
but not billed. Any differences must be taken up at once 
between shipper, booker and Bookkeeping Department, 
respectively. 



—14— 



After checking all shipping tickets (which means the 
fourth copy of the invoice) the shipper takes them to the 
cashier who approves them as to "open account" or "C.O.D." 
The matter of open shipment to an account is one which 
must be thoroughly understood between manager and 
cashier, as the manager is held accountable for any losses re- 
sulting from shipments made on credit. 

The shipper is not authorized to make a shipment from 
the fourth film invoice unless same is properly approved by 
the manager or cashier. 

After making a shipment, the shipper enters on the in- 
voice (pink copy) the print number of the release shipped. 
If the show is delivered to a city customer the operator call- 
ing for it signs the pink copy. As shipments are made dur- 
ing the day the shipper enters them on the DISTRIBU- 
TION SHEET by a check mark against the key number. 
At the end of the day the shipping tickets are handed over 
to the clerk handling the "In and Out Record." 

IN AND OUT RECORD 

This form (No. 96) must be kept up to date at all times 
to be of any value. Therefore the entries from the shipping 
tickets must be made immediately after they are turned over 
to the "In and Out" clerk. The "Due Back" dates are ob- 
tained by him from the booker who is familiar with the time 
necessary for transit of film from the exchange to the exhib- 
itor. A notation should be made at the top of this form 
showing the number of days required in transit in addition 
to the number of days that the productions are to be played. 
With this information available the clerk will be able to 
determine whether the exhibitor has held out film in excess 
of the time he agreed to play. 

DELAYED FILM is reported on form No. 281. It 
is to be submitted to the manager who decides whether the 
exhibitor should be charged for the additional time. 

The return shipments are entered in the "In and Out 
Record" from the FILM RETURN SLIP (form No. 75.) 

RETURNED SHIPMENTS 

The shipper keeps the DISTRIBUTION SHEET 
after making shipments in order to check the subjects as they 
are returned. This is done by drawing a circle around the 
key numbers at the time the films are received. When all 

—15— 



key numbers are circled, the sheets are to be given to the 
booker for filing. 

When film is returned, the shipper makes out a form 
called FILM RETURN SLIP (form No. 75) on which 
he shows theatre name, the print number as well as the sub- 
ject returned. This form goes to the IN AND OUT 
clerk who makes the proper entries therefrom. Then the 
film is turned over to a film inspector who makes out a 
FILM INSPECTION SLIP (form No. 79) noting the 
condition of each reel and signing her name to it. After 
repairing any breaks, etc., the film is put in the vault ready 
for the next shipment. The inspection slips are given to the 
manager, who should go over them daily, to note any abuse 
or destruction of film by an exhibitor. 

FORD CONTRACTS 

As no prints are given out unless the exhibitor has con- 
tracted for them and no contract is accepted unless the ex- 
hibitor has paid the amount stipulated, it follows that there 
will be no accounts receivable on Ford releases. As in ac- 
cordance with the agreement no part of the subscription is to 
be refunded to an exhibitor irrespective of whether he uses 
service or not, it follows that payments made by him in ad- 
vance of service do not constitute a liability, and are not to be 
considered as a credit balance. Consequently it is not neces- 
sary to open a ledger account for Ford service in order to 
show debits or credits as no charges are to be made on ac- 
count thereof. Instead of ledger sheets, use form No. 154 — 
CONTRACT ANALYSIS SHEET. 

The release numbers for Second Year Fords should be 
filled in beginning with No. 183. The fifty-two releases 
should then be separated into five sub-divisions (the first four 
of 10 pictures each and the last of 12 pictures) by drawing a 
line under release numbers 192, 202, 212 and 222. This will 
indicate the method of instalment payments to be followed 
by the exhibitor. 

In accordance with the contract the exhibitor is to pay 
for the first ten and last twelve releases when contract is 
signed. Consequently you enter in the "Remarks" column 
the date and amount received namely : $10. on the same line 
as release No. 183 which covers releases No. 183 to 192 in- 
clusive, and $12. on the same line as release No. 223 which 
covers releases No. 223 to 234 inclusive. The date mentioned 



—16— 



must agree with the date of the form "E" on which the col- 
lection is reported. 

57. As the instructions are that no release will be shipped 
unless payment is received therefor, it is the duty of the 
booker to see to it that the exhibitor be notified in advance 
by a special invoice (FORD INVOICE, form No. 324.) 

58. When check covering the second ten pictures is received 
and deposited, entries are to be made (like those men- 
tioned above), reporting the amount of $10. against re- 
lease No. 193, and the date of deposit. The same procedure 
is to be followed on the next two instalments. 

59. The above instructions likewise refer to first year Ford 
business secured after January 5th, 1920. In this instance 
you should rule off the first column of the contract analysis 
sheet in a similar manner as explained for second year Ford 
releases. 

60. As the booker is charged with the duty of following up 
the bookings of the releases, it is clearly up to him to see that 
the exhibitor be given advance notice of the next instalment 
falling due. He must therefore forward FORD INVOICE 
form 324 in ample time to enable the exhibitor to send in 
his check before the first picture of the next instalment 
is shipped. This invoice is made out in triplicate, the 
original forwarded to the exhibitor, the duplicate turned 
over to the bookkeeper and the third copy kept by the booker 
as a follow-up. 

61. When the money is received, the bookkeeper initials his 
copy, and hands it to the booker who then makes *he proper 
entry on form No. 154. Thereafter he files it away together 
with his copy, thus having on hand in his active file only 
the invoices of the exhibitors who have not yet remitted and 
to whom notices have been sent. 

As a memo to the booker, it is advisable to note in the 
"Remark"column the date that the Ford invoice is sent out 
to the exhibitor covering the next instalment due. 

62. When an exhibitor makes payment in full for the year's 
releases (in order to get the benefit of the discount) a memo 
to this effect should be entered in the "Remark" column, giv- 
ing the date and the amount paid. It is unnecessary in this 
instance to rule off the year's releases in five sections (as was 
explained above) as no further instalment is due. 



—17— 



The bookkeeper should handle the collections in the fol- 
lowing way : 

As no ledger account is opened for this service, the 
amounts collected are transferred to the Home Office. (See 
Section 116.) 

Concerning discount taken by exhibitors, it will only be 
necessary to report the net amounts received, namely : $46.80 
on account of subscription and $2.34 account of tax, a total 
of $49.14. 

THE FORD SHIPPING TICKET (form No. 279) 
is to be used in the same way as it is employed on account of 
the first year's shipments. No DISTRIBUTION 
SHEETS need be used, or IN AND OUT RECORD 
kept. 

It will be necessary to continue sending form "D" cover- 
ing all shipments of FORD RELEASES. You must, how- 
ever, distinguish between shipments made on $12. subscrip- 
tion contracts and the new $52. contracts. Separate pages 
must be used for each. 

These forms, as in the past, should be sent to the Home 
Office in triplicate and must show the key number, name 
of theatre, number of Ford release and the number of days 
played by the theatre. 

LEDGER 

The bookkeeper, through invoices, etc., has been in- 
formed of the transactions concerning film, accessories, etc. 
The next step will be to make the proper entries in the 
ledger in order to obtain a permanent record. 

Charges and credits for the current week should be 
posted by Wednesday or Thursday of the same week. 

A ledger sheet (form No. 69) is opened for each exhib- 
itor, (even though there may be only one transaction) giving 
complete information, as indicated on the top of the sheet, 
i.e., the name of the theatre, address, key number and owner, 
adding any other details that may be of interest, such as his 
credit standing (whether open account, C. O. D., etc.) 

Do not forget to insert the year on each page, also the 
pages of each account. 

Sufficient details must be furnished concerning each 
entry so as to make it self-explanatory. However, in order 
to avoid unnecessary work, you may use abbreviations in 
the "Item" column, e.g.+ W.T. for War Tax, A. for Acces- 
sories, Pos. for Postage, P.P. for Parcel Post, E. for Express, 
Sub. for Subrenting, Del. for Delayed Film, D. F. for 

—18— 



Damaged Film, release numbers instead of the names of the 
releases. On the credit side of the ledger, C. would stand for 
Cash, Ck. for Check, G. for form "G,"' A. Cr. for Accessory 
Credit, F. Cr. for Film Credit. Entries originating on form 
"H" should be briefly explained (as merely "H" would not 
convey any information) . Show the number of the produc- 
tion paid for. 

If a payment covers several charges it is unnecessary to 
analyze it provided.it exactly offsets them. If however, the 
exhibitor sends a check on account of some charges, you will 
have to segregate the amount so as to apply it against the 
items liquidated, leaving the balance to apply against any 
open debit. 

In order to know what is unpaid and to facilitate making 
out statements of the open items, it is important that the 
credits are checked against the corresponding debits. This 
does not mean to simply apply credits against debits of like 
amounts, but to offset the credits against the charges that 
are intended to be liquidated. The best system is to use the 
letters of the alphabet marking the charges with the same 
letter as the credit entered therefor. 

To facilitate checking and to be sure that those charges 
are credited which were intended to be paid by the exhibitor 
it is advisable to have the exhibitor return the invoice to- 
gether with his check. To accomplish this it may be well to 
have a rubber stamp made worded as follows: "To properly 
credit your account, return invoice with check." Any remit- 
tance made "on account" means a careful analysis and fol- 
low-up before the details of the transaction are forgotten. 

If an exhibitor requests a receipted bill place it in an 
alphabetical file and send it to him with other invoices or 
correspondence instead of mailing separately. It is under- 
stood of course that you should not keep a receipt indefin- 
itely in your files awaiting additional correspondence to be 
sent out. 

All items appearing on forms "B" and "C" are posted 
from the invoices, (not from the forms.) It is unnecessary 
to post the invoice or credit number to the ledger. By filing 
the invoices in the same order as listed on forms "B" and 
"C," a charge may be easily located. 

C. O. D. shipments are to be so marked in the ledger. 
Thereby you will not dun an exhibitor for a balance if it is 
really due from the Express Company. Furthermore when 
payment is received it will be easy to check off the proper 
debits. 



73. Collections are to be posted from the Cash Book daily. 
Protested checks are charged back from form F, at the end 
of each week. 

74. The items appearing on forms "G," "H" and "I" are 
posted directly from the forms. 

The preparation of the forms mentioned above will be 
explained hereafter. 

PREPARATION OF FORMS 

75. A good deal of trouble has been caused by not arranging 
the bookkeeper's work in an efficient manner, and by allow- 
ing him to do his work just as opportunity offers. It 
must be understood that ledger posting is part of the routine 
of a branch, and must be handled accordingly, which means 
that on certain days certain forms must be made up and 
posted, thereby distributing the work over the entire week, 
instead of overburdening the clerical force on any one day. 

The principal idea is to have the work so arranged that 
your forms will be ready for mailing on Saturday of the cur- 
rent week, (with the possible exception of form "J") and 
that your ledger will be in a condition to make it possible for 
your bookkeeper to obtain the balances on Saturday. 

76. We have found that the following schedule has shown 
good results in distributing the work over the week: 

Form A — Saturday. 

Form B — Wed. or Thurs. (including posting to ledger.) 

Form C— Thursday 

Form E— Daily 

Form F— Saturday 

Form G— Friday , " 

Form H— Friday 

Form I— Friday 

Form J — Saturday or Monday 

Form L — Saturday 

Form N — Saturday , 

This means that by Friday night all postings should be 
made in the ledger with the exception of Saturday's cash 
and any protested checks listed on Form "F." 

If the bookkeeper has time on Friday, he should start to 
add up the ledger in preparation of extending the balances. 

Generally, Saturday collections do not affect very many 
accounts, and can be entered quickly. After this the book- 
keeper is ready to take off the balance, and if he has been 
careful in his postings during the week, he should balance 
practically at once with the controlling figure on Form "A." 



—20— 



If, however, the bookkeeper finds that there exists any 
discrepancy between the control account on Form "A" and 
the balances taken off by him on form ."J," he should not hold 
up the mailing of all the forms, but merely keep out form 
"J," forwarding the rest to the Home Office on Saturday. 
As he retains copies of all forms, this will not in any way in- 
convenience him. If he afterwards discovers that the error 
was due to a mistake on any of the forms, he should have a 
corrected form prepared for the Home Office to replace the 
one mailed. 

FORM "B" 

This form is a recapitulation of all charges made on ac- 
count of Film Rental, War Tax, Postage, Express, Damaged 
Film, Destroyed Film, Sub-renting, etc., etc. As a matter 
of fact, all charges except for accessories must appear on this 
form. 

It is important to note that whereas the invoices are pre- 
pared weeks in advance, and are mailed to the exhibitors be- 
fore shipment is made, no charge must be entered on form 
"B" until during the week that service is actually rendered 
or contracted for. (See the article concerning "Deferred 
Playing Dates.") 

Of course, bills rendered on account of postage, express, 
etc., are regarded as accounts receivable and due at once, 
and must be entered during the week the bill is made out. 

As an analysis of all the invoices is made by the Home 
Office, it is not necessary to list any details of the charges 
on form "B," but give the key number and the total of the 
invoice only. 

In order to further decrease the work at the branch we 
have eliminated the names and locations of the theatres on 
form "B." To assist us in checking write the key number 
close to the "Amount" column. It is understood, of course, 
that the key numbers must be carefully checked before the 
report is mailed to the Home Office. It is unnecessary to 
show production or invoice numbers on form "B." 

On or before Wednesday, the yellow and blue copies of 
the film invoices for the current week should be taken from 
your Bushnel's file. Invoices rendered for Postage, Express, 
Damaged Film, etc., which were made up separately during 
the week are to be added. Then arrange the bills in alpha- 
betical order according to key numbers, separating them into 
two groups : the yellow copies to be forwarded to the Home 



—21— 



Office, and the blue to be retained for the branch files 
While the bookkeeper is posting from the blue copies to the 
ledger, a typist can make up form "B" from the yellow 
copies. 

To assure accuracy: obtain the aggregate of your in-j 
voices posted to your ledger from the blue copies, and com] 
pare this total with the one shown on form "B" which was 
prepared from the yellow copies. The two figures should^ 
agree, which will prove that all charges posted to the ledger 
are also in the group to be forwarded to the Home Office at! 
the end of the week. Occasionally it has been necessary f 01 
the Hoime Office; to inquire about missing bills, which 
would have been discovered if the above procedure had been 
followed. 

If you have to check the postings of your ledger, you 
should do so against your copy of form "B." 

The invoices which accompany form "B" must be ar 
ranged in the same order as they are listed on the form anc 
fastened together with a staple. 

Form U B" being a form for all charges, except acces 
sories, it is obvious that only those CREDITS may be listec 
thereon that pertain to the same class of charges. 

All Credits are to be grouped on form "B" after the 
charges have been listed, showing the number of the credi 
memo, the key number of the account, and the number o 
the production credited whenever the credit applies to fil 
rentals. It is unnecessary to show the name and location of 
the theatres. 

After listing the charges and credits, prepare a summary 
at the bottom of form "B" showing the total of the charges, 
less the total credits, which net figure will be entered on 
form "A." 



FORM "C" 

All accessory invoices are sorted alphabetically accord- 
ing to key numbers on Thursday of each week by the book- 
keeper. He then separates the yellow and pink copies, for 
Home Office and branch use respectively, posting to the 
ledger direct from the pink copies, while form "C" is made, 
up at the same time from the yellow copies by a typist. 

The total of the charges appearing on form "C" will be; 
checked by the bookkeeper against the aggregate of the pink 
invoices in the same manner as described for film posting. 



—22— 



The accessory invoices should be mailed to the Home Office 
in the same order as they are listed on form "C," and fas- 
tened with a staple. 

It is not necessary to show the names or locations of the 
theatres because the key numbers will be used by the Home 
Office as the only reference to the account. 

It is likewise unnecessary to show release or invoice 
numbers on form "C," However, it is the duty of the book- 
keeper to ascertain that all invoice numbers are accounted 
for. Copies of cancelled invoices are to be forwarded to 
the Home Office in the regular way. In order to check up 
the numbers it is necessary for the bookkeeper to prepare a 
memo at the bottom of form "C," stating that "Poster In- 
voices, from No to No inclusive, were used dur- 
ing week ending " 

Accessories which are sold for cash, may be charged to 
a CASH SALE ACCOUNT instead of posting them to the 
individual exhibitor's account. Such items should be listed 
separately on form "C," apart from the ordinary charges, 
making a sub-total which must agree with the cash reported 
as collected during the week on account of accessory cash 
sales. Totals only should be entered in the ledger. 

It is understood that C. O. D.'s cannot be considered as 
cash sales as no balance can be shown on form "J" under 
Cash Sales heading. 

Only ACCESSORY CREDITS should be listed on 
form "C," showing the number of the credit memo, in ad- 
dition to the key number of the account. Release numbers 
need not be mentioned. No express or postage credits are 
to be listed on form "C." 

At the bottom of form "C," a summary is prepared 
showing the aggregate charges, less the aggregate credits, 
which net figure is to be used on form "A." 

FORM "E" 

Form "E" is a record of the daily collections made and 
deposited with the bank. It is used at the same time as a 
deposit slip, and an analysis of the amount received. As a 
good many records in the Home Office depend upon the 
accuracy of this form, it is most important that all entries 
are carefully checked as to Key and Release Numbers, and 
that the proper analysis is made as to Film Collec- 
tions, Accessories, etc., also that all additions are correct. It 

—23— 



is not necessary to give the names and locations of the the- 
atres. Incorrect or insufficient information on this forrr 
will cause unnecessary correspondence. 

Form "E" is made up daily from your Cash Book. It is 
to be signed by the receiving teller of the Bank at the time 
the deposit is made. If this is impossible, obtain a duplicate 
deposit slip, properly signed by the receiving teller, and at- 
tach it to the copy of form "E" which you forward to the 
Home Office. 

Collections are a very important source of information, 
and in order to preserve a permanent record thereof, a bound 
CASH BOOK must be kept by each branch. 

The columns in the Cash Book should be headed similar 
to form "E," so that the work of transcribing from the Cash 
Book to form "E" can be done without difficulty. 

When a check is received, the cashier enters it in the 
Cash Book, giving all necessary information. Form "E" will 
be written up from the Cash Book as soon as all entries are 
made for the day, that is in time to have the deposit made at 
the bank. The postings to the ledger are made from the 
Cash Book. If the postings have to be checked, this should 
be done from form "E." 

It is not necessary to have form "E" written up in alpha- 
betical order. The Key Number should be written near the 
"Production No." column. 

If an exhibitor sends in a check paying for service on 
more than one production, the total of such check must be! 
segregated in the "Film Collection" column, giving the 
amount collected on each production. 

Collections on account of CASH ACCESSORIES 
SALES are to be entered in one total on form "E." The 
amount is to be credited to Cash Sale account in the ledger, 
and to be offset by a charge coming through form "C." 

In the "Miscellaneous" column are to be shown collec- 
tions on account of postage, express, damaged film, the pre- 
vious 15 cent War Tax, etc. All these items, except postage ; i 
and express must be designated in such a way as to enable us 
to analyze them easilv, The following code should be used ■ ' 

O.T.— Old Tax (150 Reel Tax.) 

Sub. — Sub-renting. 

Del. — Delayed shipments. 

D. F.— Damaged or destroyed film. 

S. — Suspense. 



—24— 



A "Suspense" entry should be made in the event that an 
exhibitor remits "on account" and it is impossible to show 
(at the time the money is collected) the production number 
and other information required. It is essential that a release 
number is shown against each item entered in the "Film 
Collection" column. Later when the details are received, 
a transfer must be made on form "H," from "Suspense" 
to the proper production or group. 

^8. The Tax received on account of FORD Subscriptions, 

is not to be entered in the 5% tax column, but placed in the 
"Ford and Coupon Book" column together with the amount 
of the subscription. 

FORM "F" 

This form represents a summary of all deposits made 
during the week and is to be prepared on Saturday after the 
deposit of the day is made. The figures are obtained from 
the totals of your daily deposits shown on form "E." The 
figure in the total column must agree with the aggregate 
of the distribution made. 

PROTESTED CHECKS are charged by the bank to 
the depository account. This cancels the deposit previously 
made and the amount should be deducted from the total of 
the deposits made during the week, distributing it in the 
same way as the deposit was originally entered. Such de- 
duction from your deposit serves as a charge to your cus- 
tomer's account. Naturally any protest fee should be added 
to such charge, the amount of which is to be entered in the 
miscellaneous column. Please be sure that the same produc- 
tion number is shown when charging the check back, as was 
originally reported. 

As soon as notice is received from the bank advising you 
of a protested check it is imperative that steps be taken im- 
mediately to properly protect ourselves. 

On form "F," list all protested checks that have been re- 
turned during the week and do not hold any over until the 
succeeding week, while attempting to settle the matter. 

101 BANK STATEMENTS and cancelled checks are for- 

warded by the bank to the Home Office where a reconcili- 
ation of the account is made. You will be notified by the 
Home Office of any discrepancies. 

The net weekly deposits are to be entered on form "A." 



—25— 



FORM "G" 

102 This is a record showing the amount of CONTRACT 1 

PAYMENTS applied. Entries are obtained from corre- 
spondence and other sources such as the cut-off sheet, (form 
No. 153) which shows the date when a contract expires, etc. 

As soon as such information is received, the bookkeeper 
makes a notation on a working sheet of form "G." The 
form itself is finally made up on Friday, giving all contract 
payments applied during the current week. 

103. Contract payments are to be applied as the contract ex- 
pires in accordance with its terms. A contract payment may 
also be applied in satisfaction of any claim we may have 
against the customer's account. It must be remembered, 
however, that to apply a contract payment on an account 
which is still active with us does not necessarily mean a sat- 
isfactory solution of the difficulty, since we require that a 
contract payment be maintained by every active account un- 
til the contract has expired. Consequently while a debt may 
appear liquidated by applying a customer's deposit you de- 
feat the very purpose of the rule (to obtain a contract pay- 
ment for every account) if the bookkeeper is allowed to 
apply it in order to avoid the necessity of following up an 
outstanding bill. 

104. When a contract expires, the contract payment is applied 
as a credit against the charge resulting from the last service 
rendered under the contract. 

For purposes of analysis, care must be taken to show on 
form "G" clearly the amounts to be applied to releases 
(giving their numbers), war tax, accessories, express 
charges, etc. 

The credit entered on the account of an exhibitor from 
form "G" is the same as a cash item and should be analyzed 
accordingly. 

105. As a contract payment is given on account of a particular 
contract or series, it is preferable to liquidate charges arising 
from the same contract when applying it. 

However, a contract payment may be transferred to any 
other series as the occasion demands. Such transfers are 
made on form "H' and will be discussed later. 

106. The contract payment is posted in the ledger (in black 
ink) from the cash book crediting the account in the special 
column set aside for this purpose. 

Before you apply a contract payment (in red ink in the 
special column of the ledger) it will be necessary to 

—26— 



verify the net amount standing to the credit of the exhibitor. 

The net figure on form "G" is transferred to form "A" 
as a credit. 

FORM "I" 

This form deals with the record of COUPONS re- 
deemed. The coupons turned in by the exhibitor on account 
of sale of accessories are to be accounted for by giving the 
key number of the account, the number of the coupon book, 
and the amount. As coupons have the same value as cash, 
they must be treated accordingly. 

FORM "J" 

Form "J" is a record of the CUSTOMER'S BAL- 
ANCES and CONTRACT PAYMENTS. 

In order to give a clear analysis of the customer's account 
on form "J" it is necessary to check out debits against credits 
as explained above. (Section 69). 

An erroneous impression may be created in stating a 
net balance of an exhibitor's account, for the reason that he 
may owe for certain bills and he may have made a payment 
on account of service, which is to be rendered later, but for 
which no charge has yet gone through. In reality an analy- 
sis of his account would show a debit balance on account of 
some unliquidated charges due us and certain service due 
him on account of payments made in advance. We want 
this condition to be reflected in the analysis of form "J." 

To cite a concrete example of a customer's account which 
may read as follows: 

Debits Credits 

61 $50.00 On^c61 $25.00 

W. T 2.50 A a 7.88 

A a 7.88 W. T 1.50 

62 75.00 63 100.00 

W. T 3.75 

A 1.20 134.38 



140.33 



The account will show a net debit balance of $5.95, but its 
analysis will indicate that this exhibitor owes $105.95, and 
that we owe him for service on account of payment made 
in advance $100. It must be so reported on form "J": 
$105.95 in the debit column, and $100 in the credit column 
against this same account. 



The debit figure is obtained by adding up the open 
charges less any payments made on account of same. The 
credit figure is prepared from such credits as do not apply 
against debits entered in the account. 

111. The NET balance of form "J," which means the total 
debits less credits, must agree with the controlling figure 
shown on form "A." 

112. If shipments are made C. O. D. any outstanding bal- 
ances on account thereof are to be marked accordingly on 
form "J." 

113. Contract Payment Balances of each account are listed in 
the right hand column on this same form, representing an 
exact copy of the figures shown in your ledger, the total of 
which must agree with the controlling account on form U A." 

FORM "A" 

114. These instructions cover the revised form "A" (forms 
No. 132 and 144) which is the summary of forms "B," "C," 
"F," "G," "H" and "I" giving the controlling balance which 
must agree with the aggregate of all customer's balances as 
shown on form "J." Only net figures are to be used on this 
form. 

115. The revised form No. 144 has a column added to seg- 
regate contract payment entries from those referring to the 
current ledger accounts. 

The CONTRACT PAYMENT BALANCE is ob- 
tained in the following manner: "Customers contract pay- 
ment balance forwarded" is the figure representing the total 
contract payments at the end of the previous week. It is a 
credit balance indicating that payments made by exhibitors 
have not as yet been liquidated by charges made on account 
of service rendered. This figure is extended in the memo- 
randum column. Among your total receipts entered on 
form U F" additional contract payments may have been col- 
lected which should be added to the contract payments on 
hand. Contract payments applied are a deduction. They 
affect both your current accounts and the customer's contract 
payment balance, therefore, they must be posted as a credit 
to the former and a debit to (subtracted from) the latter, 
consequently this figure is to be entered twice on form "A." 

When a contract payment is refunded, no entry is made 
in your current account as it does not affect your customer's 
balance. However, it reduces the contract payment liabil- 
ity and should, therefore, be deducted from the contract pay- 
ment balance, resulting in a net balance on hand at the end 
of the week. 

—28— 



Collections on account of COUPON BOOKS or 
FORD subscriptions, (the latter including 5% tax) are to 
be transferred to the Home Office by entries in the debit 
column on form "A." 

FORM "H" 

This form covers journal entries made by the branch as 
well as transfers to or from the Home Office. It deals with 
deferred playing dates, transfer of bad debts, refunds made 
by the Home Office on account of contract payments, etc. 

A working copy of this form should be prepared during 
the week whenever such information is received. On Fri- 
day of each week this form is closed and turned over to the 
typist for final preparation. 

On form "A" the totals are entered, both debits and 
credits. 

There are four groups of entries made on form "H." : 

1. One that affects your current account: 

(a) . In the case of OVERPAYMENT on one picture 

credited later to another production. 

(b) . In case of SUBSTITUTION, e. g., when one 

production is charged but a different one is act- 
ually furnished. 

(c) . When a RELEASE IS CREDITED IN 

ERROR (on account of payment received). 

(d) . When a customer's ACCOUNT is CHARGED 

or credited IN ERROR. 
All of these are double entries for your ledger account. 

2. One that affects the contract payment accounts only 
as e.g., where the contract payment has expired but the 
exhibitor has paid for all pictures and the CONTRACT 
PAYMENT is TRANSFERRED to another group; 
(these are double entries.) 

3. One that affects the current account as well as the con- 
tract payment account: e.g., a CREDIT BALANCE 
TRANSFERRED (which is the reverse from apply- 
ing a contract payment) TO CONTRACT PAY- 
MENT ACCOUNT. (These are double entries.) 

4. One that affects the Home Office and consequently a 
single entry only is made: 

(A) In regard to the current account: 

(a). In case a PLAY DATE is DEFERRED 
until a later date. 



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(b) . When CHARGING OFF a credit BAL- 

ANCE of an inactive account. 

(c) . When an account is considered uncollect- 

able (BAD DEBT.) 

(d) . When an item is CHARGED TWICE. 

(e) . When a REFUND is made by the Home 

Office on account of overpayment. 
(B). In regard to the CONTRACT PAYMENTS: 
when it is FORFEITED, or when it is REFUNDED by 
the Home Office. 

TRANSFERS OF CREDIT BALANCES ON INACTIVE 

ACCOUNTS 

122. Credit balances on inactive accounts may be transferred 
to the Home Office without requesting authority. Give all 
data concerning this transfer such as the amount of film 
rental, tax, production number, accessories, etc. Such a 
transfer is debited to the account from form "H," and con- 
sequently appears as a debit on form "A." 

TRANSFER OF UNCOLLECTABLE ITEMS 

123. Before an uncollectable balance can be transferred to 
the Home Office the case should be submitted, giving com- 
plete data and the reason why the amount cannot be col- 
lected. 

When authority is given to transfer such an item to 
the Home Office on form "H" state full details so as to en- 
able the Home Office to make an intelligent analysis of the 
transaction. Also give the date of the letter from the Home 
Office authorizing you to charge off the account in question. 

Before requesting permission to charge off uncollectable 
amounts be sure that all contract payments have been ap- 
plied against this account. 

As these items are credited to your current account, they 
appear likewise as credits on form "A." 

REFUND OF CREDIT BALANCES 

124. A refund is made upon requisition by the branch man- 
ager on the prescribed form No. 139. The branch has no 
authority to make a refund out of its working fund. 

When the refund check is received from the Home Of- 
fice, an entry is made on form "H" debiting the current ac- 
count and entering the total of such refunds in the debit 
column of form "A." Give full analysis of the amounts so 



—30— 



refunded on form "H" as to film rental, production number, 
tax, etc. 



REFUNDS OF CONTRACT PAYMENTS 

125. On receipt of refund check from the Home Office, make 
the necessary entries on form "H" (giving detailed inform- 
ation) charging the contract payment account of the 
exhibitor by deducting amounts so refunded from the con- 
tract payment balance (also on form "A"). State the series 
to which the contract payment refund refers, as for in- 
stance, Kennedy, Beach, Farrar, etc. 

JOURNAL ENTRIES 

126. If a transfer is made from one theatre to another, state 
full details on form "H." When transferring from one 
production to another you will have to give information 
showing whether the item so transferred is a charge which 
appeared on form "B" or "C" or a credit which appeared on 
forms "E" or "G" stating production number as well as key 
number. It is not necessary to transfer any charges or credits 
for tax or accessories from one production to another. 

127. It may be found necessary occasionally to SUBSTI- 
TUTE a different release in place of the one originally 
scheduled and billed. As substitutions usually take place just 
before the shipment, and as the invoices have been prepared 
and sent, it is necessary for the shipper to arrange with the 
booker who in turn changes his booking sheets accord- 
ingly. The shipper then communicates this fact to the book- 
keeper who changes his records by making a notation 
thereof on the working sheet of form "H." (See also ex- 
planation concerning "Def erred Playing Dates"). 

TRANSFERS TO ANOTHER BRANCH 

128. Special instructions are issued from the Home Office in 
instances where a balance is to be transferred from one 
branch to another. 

FORM "N" 

129. This form deals with the list of weekly disbursements. 
It has no connection with form "A" or any other forms for- 
warded to the Home Office. 

—31— 



At the top of this form certain information is to be en- 
tered which is a control on the balance of your working 
fund as well as the petty cash on hand. 

130. Before any special work is undertaken by a branch 
necessitating an extraordinary outlay, authority should be 
obtained from the Home Office. At the time payment is 
reported on form "N" you should mention the date of the 
letter in which authority was given. This refers to the pur- 
chase of furniture, equipment, etc. 

131. As the Manager is held responsible for the working fund 
of the branch, it is his duty to personally approve all pay- 
ments made. A rubber stamp signature on the vouchers will 
not be accepted. 

132. , The checks are to be entered in numerical order, each 

number to be accounted for. Give description of each item 
paid, for instance: 

Office supplies, telephone, salaries for week ending, etc. 

133. A receipt which is to accompany the form should be 
obtained for every payment. In cases where it is impos- 
sible to forward an original voucher with the form, a dum- 
my voucher may be prepared and approved by the Manager, 
describing the payment, and giving all possible information 
stating thereon that the original will be forwarded later 
when properly receipted. 

In order to have receipted vouchers accompanying the 
report it is advisable to pay as many bills as possible at the 
beginning of the week, thereby making it possible for you to 
enclose receipted bills with your current report to the Home 
Office. Always try to obtain original receipts covering all 
payments. 

It is the cashier's duty to see that all vouchers are signed 
by the party receiving the money, and approved by the Man- 
ager, and that they agree with the entries made on form "N." 
One check is drawn for the weekly payroll, paid out in cash, 
and the total only is entered on form a N" against the num- 
ber of this check. 

To make sure that all vouchers are forwarded which are 
entered on form "N" it is a good plan to add up these 
vouchers and see that the aggregate agrees with the total 
shown on form "N." 

To facilitate checking, the vouchers should be arranged 
in the same order as the checks listed on form "N." Clip- 
ping them together will hold them in place during transit. 

—32— 



134. No PROTESTED CHECKS are to be taken up 
through the working fund as they are charged to the same 
account where they were originally deposited. 

135. , A shipment returned C. O. D. by an exhibitor may be 

released without paying for it, provided you render the 
proper form of affidavit. 

The case of dealing with an exhibitor who returns a ship- 
ment with C. (X D. charges, has been covered by the rules 
of Interstate Commerce Commission concerning express 
shipments, and a letter has been received by the National 
Association of the Motion Picture Industry, from the Third 
Assistant Postmaster General under date of October, 13, 
1919 concerning parcel post shipments which reads as 
follows : 

"In reply to your communication of October 2, 1919, 
you are informed that instructions have this date been sent 
to the Postmaster of the cities where are located the prin- 
cipal motion picture exchanges authorizing the delivery 
without collection of parcels containing motion picture films 
sent C. O. D. mail by exhibitors to motion picture managers, 
distributors, or exchanges, upon submission to them of af- 
fidavits that the films are their sole property and that the 
senders have no equity therein." 

Any C. O. D. which has, nevertherless, been taken up 
must be charged back to the exhibitor on form "B" through 
a film invoice. 

PETTY CASH 

136. In order to have the petty cash system of your branch 
on a sound basis it is necessary to follow the rules of the so- 
called Imprest system. This means that a fixed amount is 
kept in your petty cash, (for instance, $50) which must 
always be on hand either in cash or in vouchers representing 
disbursements made. When the cash runs low the vouchers 
are taken up and a check is made out to the order of cash for 
the identical amount of cash represented by such vouchers, 
and the amount of this check is entered in the "Item" column. 
At the end of the week the total of the petty cash vouchers 
equals the amount of the checks drawn therefor. The 
vouchers are entered under headings as follows: postage, 
stationery, express and miscellaneous. It is not necessary to 
list on form "N" the names of the parties receiving the 
money. The total of the petty cash exoenses is to be extended 
to the "Amount" column and included in the weekly expense. 
You may draw as many petty cash reimbursement checks 
during the week as necessary, thus avoiding the danger of 
keeping too large an amount of cash in your desk. 

—33— 



Memo. If you wish to reduce the amount of your petty 
cash fund make a deposit of the excess amount in the bank 
to the credit of the working fund. This will increase your 
check book balance and decrease the amount of your petty 
cash shown in the recapitulation figures at the right upper 
side of form "N." 

ADVANCES 

137. When making an advance show the check number, date 
and name of the party, but do not extend payment in the 
"Amount" column. 

The traveller's advances should appear in the space pro- 
vided at the upper right hand side of the form. As long as 
the advance to an individual is not to be changed, any ex- 
penses incurred by him will be paid in the usual manner. 
When, however, the advance is to be applied on account of 
expenses they must be listed in the usual manner and a check 
drawn for the amount due him after he has returned his 
advance or simply paying him the difference between the 
advance and the total expense incurred. 

If the full amount of the advance or a part of it is used 
as a reimbursement of the traveller's expenses it is neces- 
sary to list the sum in the "Amount" column for the reason 
that the money has been actually spent and you are entitled 
to reimbursement from the Home Office. In such 
cases no check number is to be listed, but a memorandum 
should be made stating that the amount was paid by an ad- 
vance. If the advance is turned in, and there are no expenses 
to offset it, or the expenses are less than the advance, the 
money should be deposited in the bank to the credit of 
your working fund increasing your check book balance and 
wiping out the advance stated previously at the upper right 
hand side of the report. Be sure to enter such deposit prop- 
erly on the stub of your check book. 

Please remember that an advance is not an expense and 
consequently should not be listed in the "Amount" column 
for reimbursement from the Home Office. Advances are 
merely transfers of part of your working fund from your 
bank balance to another account. They are covered by 
I. O. U.'s held in the Petty Cash drawer. 

RECONCILIATION OF WORKING FUND 

138. In order to reconcile the figures of the working fund 
shown on the upper left hand side of form "N" with the 
total working fund you should add to the balance 

—34— 



shown the amount of checks in transit from the Home Office. 
Please see to it that your working fund is always in agree- 
ment with the total amount charged to your branch. 

The figure in the right hand corner of form "N" shows 
an analysis of your balance on hand at the end of the week, 
aggregating the same figure as shown on the left. The check 
book balance and cash in)drawer figures must be taken from 
the stub of your check book and an actual count of your 
petty cash on hand respectively. 

ADVANCES should be made for business purposes 
only. No personal advances are to be permitted. 

Reconciliation of the working fund with the bank is 
made by the Home Office. Any differences will be reported 
to the branch. 

139. When expenses incurred by a DIVISION MANAGER 
are paid, a proper notation must be made after the item. 

If any portion of the expense is chargeable to other 
branch offices a notation must be made at the bottom of your 
form, showing the amount applying to each branch. 

140. The expense of CLEANING FILMS as arranged by 
our film department is to be paid by the branch. As soon as 
the bills are checked and found correct, payment is to be 
made from your working fund and the expenditure listed 
upon form "N" in the usual manner. At the bottom of form 
"N" a notation must be made dividing the releases into the 
following groups : 

Goldwyn 

Beach 

Farrar 

Capitol Comedies, etc. 
Show the number of reels cleaned for each group. 

141. For Home Office purposes it is necessary that the word 
"PUBLICITY" be written in the "Item" column for all ex- 
penses incurred by the exploitation department of the branch 
office. In the event that a separate check is not drawn for 
expenses incurred by this department, a recapitulation 
should be made listing all items pertaining to publicity 
work. Also show at the bottom of form "N" the amount of 
expressage paid for CAPITOL COMEDIES and BRAY 
PICTOGRAPHS. In the event that nothing is paid on 
account thereof during the current week make a notation to 
that effect ~- 

VOUCHERS AND RECEIPTS 

142. A form (No. 64) has been designed to take care of such 
expenses as carfare, postage and items where it is impossible 



—35— 



to get a commercial receipt from the party to whom payment 
is made. This voucher must not be used in local purchases 
of merchandise as it is preferable to obtain a receipt on the 
regular bill head of the seller. All these vouchers are to be 
signed by the party receiving the money and approved by 
the manager. 

TRAVELING EXPENSE 

143. Salesmen and others who travel should report expenses 
incurred by them on form No. 65. On the reverse side of the 
form a cash report is to be rilled in by those who have re- 
ceived an advance. It is the duty of the branch cashier to go 
over these figures. Naturally extensions and additions of 
such vouchers are verified before payment is made. They 
are to be approved by the Manager. 

SALARY RECEIPTS 

144. A salary receipt (form No. 66) is made out for each 
employee who is paid by the branch. To be of any value to 
us such a receipt has to be signed personally by the indi- 
vidual whose name appears thereon. In order to give the 
Home Office necessary information it is important that the 
correct duties of an employee are stated thereon. All these 
vouchers are to be approved by the Manager. 

Since on form "N" the amount of the payroll is entered 
in one item, the salary receipts must be carefully checked to 
make sure that they agree with the figure shown on form 
"N." 

Supper money or overtime is not considered as regular 
salary, and a receipt therefor should be made out on the 
expense voucher form No. 64. 

CONTRACT PAYMENTS 

145. Information concerning contract payments is taken from 
the following sources: 

Form E — When a deposit of contract payment is made. 

Form F— When a check for contract payment is re- 
turned by the Bank marked N. G. 

Form G — When a contract payment is applied to the 
current account of an exhibitor. 

Form H — On account of transfers due to various rea- 
sons. 

When a contract payment is entered in the ledger in the 
proper column the figures are written in black ink, any ad- 
dition thereto likewise in black ink, whereas any deduction 
therefrom (when applied, etc.) is written in red ink. 

—36— 



At the same time it is necessary to record the group on 
account of which the contract payment is made. The date 
should agree with that of form "E," on which the deposit 
is reported. It is suggested to use abbreviations to indicate 
the group, such as T. M. — Tom Moore; G. F. — Geraldine 
t Farrar; M. K. — Madge Kennedy, etc. 

The net balance of contract payments for each account 
is entered on form "J." 

FORD SUBSCRIPTIONS are not considered as con- 
tract payments. 

KEY NUMBER BOOK 

146. This book is an index of all theatres that have been 
served by your branch at any time. Once a key number has 
been assigned to a certain theatre it stays with it irrespective 
of the fact that the exhibitor may sign up for a single picture 
only. This is a cardinal rule and must be strictly observed 
as most records in the Home Office are based on key numbers 
only. Even if a theatre is closed or is destroyed, the number 
formerly assigned to it cannot be given to any other theatre. 

A key number book should be prepared for the use of the 
branch manager, bookkeeper, booker and shipping clerk. 
It should contain the name of the owner and location. Ob- 
viously in order to be valuable it must be kept up to date. 
If several books are in use, see to it that any change is re- 
corded in all of them. 

GENERAL RECEIPTS 

147. This form (No. 67) is used in cases where an exhibitor 
pays an amount and requests a receipt. It is to be signed by 
the cashier. It should not be used when payment is made by 
the branch. 

ENVELOPES 

148. A special envelope (form No. 68) is to be used in for- 
warding vouchers to the Home Office. As this envelope is 
kept by the Home Office for filing, the required information 
should be entered on it. Please note that it is not to be sealed. 

Poster coupons are forwarded in envelope (form No. 
84) which is to be sealed. The amount of coupons enclosed, 
must, of course, agree with the amount stated on form "I." 

All film invoices and credits are sent to the Home Office 
in envelope No. 101. Indicate the branch and week num- 
bers. Seal envelopes. 

All accessory (Egry) invoices and credits are put in en- 
velope No. 102. Indicate the branch and week numbers. 
Seal envelope. 

—37— - — 



When forwarding papers to the Home Office use en- 
velopes with printed address (469 Fifth Avenue, New 
York.) Please see to it that the envelope is not only well 
sealed, but also does not contain too many papers, as it may 
come apart while in transit. 

Remember that serious delay is caused if insufficient 
postage is put on the mail, or by omission of the street address 
of the Home Office. 

EXHIBITORS' POSTER ORDER 

149. When exhibitors order their supply of accessories they 
should be requested to use the order form No. 82 or No. 
316, enclosing check or poster coupon at the same time. 

As the prices of posters and slides have been increased 
since form No. 316 was printed it will be necessary 
to change the form before sending to exhibitors. This 
should be done by a rubber stamp which will block out the 
old price and print the new one over it. 

It may be advisable to send three copies of the above 
forms to the exhibitors at the same time when notice of ex- 
hibition date (form No. 247) is mailed to them. 

ACCESSORY INVENTORY 

150. We require a bi-weekly inventory of accessories on hand 
in the branches, segregated by release and kind of acces- 
sories. Form No. 138 (or revised form No. 321) is used for 
this purpose. 

As posters arrive in the branches they should be num- 
bered before they are put on the racks, starting with No. 1 
at the bottom. Consequently, the top figure will show the 
quantity of any particular kind on hand. However, this 
method of taking stock will not be accurate if the poster 
clerk in filling an order should pull a sheet from the middle 
of the pile instead of taking the top one. 

An inventory, in order to be of value to us, must be ac- 
curate, (counted and not estimated.) Two copies of the form 
are to be sent to the Home Office. They do not necessarily 
have to be typewritten, provided they are clear and legible. 

REQUEST FOR REFUND 

151. If a refund of a credit balance or contract payment is 
desired, use form No. 139 which is to be signed by both 
Manager and Cashier. 

As far as possible, the name of the theatre owner should 
be given so that the check can be made payable to an in- 

—38— 



dividual, rather than to a theatre. This, of course, only ap- 
plies to cases where individuals own theatres and not when 
they are owned by a partnership or a corporation. 

Changes of ownership, also the duplication of theatre 
names make it desirable to have checks d rawn in the manner 
stated above. 

No refund of Contract Payment will be made unless 
the contract has expired or has been cancelled. If the re- 
quest is not self-explanatory, state reason. 

The request must show a complete analysis of the amount 
to be refunded. In case of a credit balance, production 
numbers in addition to the amounts received on film, acces- 
sories, tax, etc., must be listed. Contract payment requests 
must name the series. 

All requests for refunds are checked with the Home Of- 
fice contract reports, contract payment records, ledger bal- 
ance figures and the branch form "J." By complying with 
the above considerable time will be saved and the refund 
passed upon and made without delay. 

REQUISITIONS 

152. All supplies are to be ordered on Requisition Form No. 
128, giving complete description of article required. In 
ordering stationery, mention form number in addition to 
the name. 

If it becomes necessary to wire, the number of your re- 
quisition must be mentioned in the telegram. Of course, the 
requisition is to be mailed immediately. Do not forget to 
identify this requisition as "Confirmation of Telegram of 
(date)." All requisitions are to be signed by the Manager. 
The yellow copy is held by the branch as a follow-up. 

If the merchandise in question is not in stock the supply 
department prepares a purchase order form No. 100 and 
mails the "Receiving Copy" thereof directly to the branch. 
When goods are received, note quantity and condition and 
mail report at once to Home Office. Since no bills are paid 
until the Home Office has been advised that goods are re- 
ceived in good condition, you will realize the importance of 
forwarding acknowledgement without delay. 

INTER-BRANCH SHIPMENTS 

153. As a rule, no branch should order accessories directly 
from another branch. All orders must be sent to the Supply 
Department which fills them from stock or through ship- 
ment from a branch by issuing an Inter-Branch shipping 
order, form No. 289. 



—39— 



Whenever you notice that the stock is running low, 
place a requisition for it. Do not wait until it is exhausted 
and then try to obtain articles by using telegraph and tele- 
phone. You will realize this is not only inefficient, but ex- 
pensive to the corporation. A "re-order" point should be 
, fixed for all articles used by the branch and whenever this is 
reached the stock clerk should automatically notify the Man- 
ager so that an order may be made out. 

154. If it is imperative for a branch to obtain certain goods by 
requesting the nearest branch to ship them, the branch send- 
ing them should make out an Egry invoice without extend- 
ing prices, entering thereon the reason for shipment. The 
yellow copy is sent to the Home Office together with the 
other poster invoices, while the original is mailed to the 
branch receiving the goods. A memo entry of the shipment 
is made on form "C." 

If in the above mentioned case, the accessories are 
shipped to an exhibitor direct, the branch serving such ex- 
hibitor should bill him the same as if the shipment had been 
made by the branch from its own stock. 

STATEMENTS 

155. Although all branches have a supply of statement blanks 
(form No. 27) they are not generally used. When balancing 
the books at the end of the week prepare statements of the 
open items on accounts which start to run past due. Thus 
you avoid the possibility of creating balances which consist 
mainly of differences and will be difficult to collect. But 
making out a statement does not necessarily settle a balance. 
It frequently becomes necessary to follow it up to get results, 
therefore it should always be prepared in duplicate and a 
copy filed in a Bushnell 1-31 file placing it far enough ahead 
so as to allow the exhibitor time enough to reply. The copy 
may be destroyed after the account is settled. 

In order not to interfere with the routine of the current 
work, the preparation of statements should be distributed 
over the week. 

POSTAGE RECORD 

156. . Postage represents money, and aggregates a considerate 

sum monthly. It therefore should be handled: in a simila 
manner as your branch disbursements : A fixed amount o 
stamps is given to the shipper, who will be held responsibl 
therefor. 



—40— 



To have a record of the stamps used by him for his ship- 
ments, get a book (columnar) and head the columns as fol- 
lows: 

Date Theatre City Film or Pos- Poster In- Date Replenished 

Posters tage voice No. Billed Date Amount 

When stamps are used, the shipper makes entries under 
the' first five columns. As soon as the supply of stamps is 
exhausted the shipper takes this book to the cashier who 
gives him an amount of stamps equivalent to the total of the 
fifth column. At the same time the date and amount of 
stamps given is noted in the last column on the same line as 
the last item refunded, drawing a red line under it. 

As aH.shipments to exhibitors are made at their expense, 
it is fair to assume that postage used by the shipping clerk 
ordinarily constitutes an account receivable. Therefore, the 
biller takes this book once a week and adds the postage to the 
bills, provided there is no notation in the "Poster Invoice 
Number" column indicating that the charge has already 
been added to an accessory bill. The date of the bill is en- 
tered in the seventh column. 

The shipper is responsible for all stamps turned over to 
him. 

If posters and films are shipped by two different persons, 
each snipper should have a supply of stamps and account for 
them as described above. 

This method will enable you to have an accurate check 
on the stamps used by your shipping department. You also 
eliminate the possibility of neglecting to charge the exhib- 
itor. 

(In the above instructions it is not intended that stamps 
given to the shipper are reported as an advance. As here- 
tofore, stamps are to be listed on form "N" when purchased.) 

EXPRESS RECORD 

L57. As stated in a previous paragraph, express should be 

billed back to the exhibitor, (see postage.) The cashier 
may use a similar book entering all express items paid by 
check or by Petty Cash. The biller should enter the date 
when the charge is made back to the exhibtor. Charges for 
telegrams should also be handled in this book. 

C. O. D. RECORD 

L58. Have a blank book ruled with the following headings: 

Date Key No. Theatre City Name of Amount of Date Remarks 

Express Co. C. O. D. Received 

When shipment is made, enter the necessary information. 
This record will prove a valuable follow-up. (See that the 
Express Companies make settlements in proper time.) 



—41— 



FILM CONDEMNED BY CENSOR 

In such cases a charge must be made as originally pro- 
vided for in the contract. During the same week a Credit 
Memo is to be prepared stating "Subject Condemned by 
Censor." 

PAYMENTS MADE IN ADVANCE 

Such payments have nothing to do with Contract Pay- 
ments. If a one-picture contract is signed, and part of the 
contract price paid down, it is to be treated as a Credit to 
the current account, entering it on form "E" in the Film 
Rental column with the production number. It must also 
appear as a credit balance on form "J" until the charge is 
made in the regular manner. 

COUPON BOOKS 

As these have the same value as cash, they are to be kept 
in a safe place. It is advisable to keep a record of the sales 
made, by using a ledger sheet (both Debit and Credit sides), 
giving the date of sales, coupon book number, and the name 
of the exhibitor. 

TAX REPORTS 

All information and blanks referring to State, Local, 
License and other taxes must be sent to the Home Office in 
duplicate. Unless authorized by the Home Office, a branch 
is not to make a Tax Return. 

The Home Office files the 5% Government Tax for all 
branches and it is unnecessary to send in any blanks therefor. 

ACCESSORIES GIVEN AWAY 

Any accessories given away must be listed on an Egry 
slip the same as if sold, but without extending any price. 
The branch manager signs it giving the reason. 

CHANGE IN PAYROLL 

No employee's salary is to be increased without the Home 
Office's approval first being obtained. In letters requesting 
authority to raise salaries, the following information should 
be furnished : Name of employee, position, present salary, 
proposed increase, length of time employed, date and amount 
of last increase. 

OPINION REPORT 
(Form No. 280) 

We are interested to learn your opinion regarding the 
selling possibilities of the pictures you receive. Likewise it 



—42— 



may be used to good advantage by the Studio. Needless to 
say that only your frank opinion is solicited. The form used 
is self-explanatory. 

INCOMING MAIL 

166. Letters and memorandums should be routed from one 
department to another and properly initialed, indicating 
that the various points brought up have been attended to. 

Two systems may be used. One giving each employee a 
number and having each letter marked in the upper right 
hand corner with the number of the person who is to read it. 
The letter will then be passed from one party to another 
each initialing it after his number, when he has properly at- 
tended to it. When all parties have seen the letter it should 
be filed. 

The other system is to have a rubber stamp prepared 
naming various departments, e.g., Manager, Exploitation, 
Bookkeeping, Cashier, Booker, Shipper, Poster Clerk, 
Chief Inspector. The parties who are to read the letter will 
then be checked and same will pass from one to another as 
indicated above. 

All mail should either be opened by the Manager or 
referred to him so that he may note upon each letter the de- 
partment to which it is to be sent. 

PRINTS 
Form "L" 

167. This is a weekly summary of all prints received, trans- 
ferred, or destroyed. 

1. In the first three columns, production number, date, 
name of productions are inserted. 

2. In the "Received" column, you report the number of 
prints of each feature received during the week. 

3. In the "Transferred" column, you enter the number of 
prints of all features transferred from the branch. 

4. In the "Destroyed" column, you report the number of 
prints of any feature destroyed. 

5. In the "Remarks" column, you report from whom you 
received prints, e.g., Laboratory, other branch, (giving 
its name) etc., or to whom transferred or by whom des- 
troyed. 

6. It should be noted that showing a print in the "Des- 
troyed" column is not considered sufficient. It must be 
followed up by a letter giving full details, also stating 
the steps taken by you to secure settlement. 



—43— 



7. At the bottom of this form you will find a recapitulation 
of prints on hand at the beginning of the week adding 
the prints received, and subtracting those destroyed or 
transferred, leaving the number of prints on hand. 

8. When a print is lost it must be immediately reported to 
the Home Office. No transfer is to be made on form 
"L" until authorized. 

9. No entry is to be made on account of regular shipments 
to or from exhibitors. 

REPORT OF FILM SHIPMENTS 

This form (No. 292) is used showing all shipments of 
prints, (Temporary or Permanent,) from: 

A. One branch to another. 

B. A branch to the Laboratory. 

C. A branch to any other point excepting regular ship- 
ments to exhibitors. 

1. The white copy is to be mailed to the Home Office on 
date of shipment. 

The pink copy is to be mailed to the office receiving 
the shipment, where it is signed and then forwarded to 
the Home Office. 

The blue copy is placed in the shipment and filed by 
the receiving-office. 

The yellow copy is retained by the office making the 
shipment. 

2. When film shipments are to be permanent, state who 
authorized them. 

3. On temporary shipments of film give the approximate 
length of time before print will be returned. 

4. State whether shipment is sent express, parcel-post, 
messenger, etc. 

5. All sets of prints should be clearly identified by letter 
"A," "B," "C," etc., mentioning exactly which print is 
shipped. 

6. As all numbers of form No. 292 must be accounted for, 
spoiled copies should be marked void and sent complete 
to Home Office. 

7. More than one print may be reported on the same ship- 
ping ticket when the destination is the same. 



SALESMAN'S ROUTE SHEET AND VISIT REPORT 

169. This form (No. 322) is used to route salesmen and to 

give them all essential information in possession of the 
branch regarding each customer or town which is to be 
visited. It is also used as a report to the Home Office show- 
ing the activities of the branch and the salesmen. The in- 
formation is obtained by the branch from THEATRE 
FOLLOW-UP CARD, (forms No. 134 and 134-A.) 

Form No. 322 is made out in quadruplicate, there being 
white, blue, pink and yellow copies. The original and du- 
plicate (white and blue copies) are given to the salesmen. 
As soon as a theatre is visited, the salesman makes the 
necessary notations upon the form made out for the particu- 
lar theatre, and mails the white copy to the branch and 
the blue copy to the Home Office. 

The triplicate or pink copy is retained by the branch 
manager and used as a follow up, to see that the salesmen 
return the white copy and that all necessary information is 
listed thereon. The quadruplicate or yellow copy is mailed 
to the Home Office, by the branch manager, at the time the 
forms are turned over to the salesman. 

These forms will be grouped together in "books." A 
"book" consists of a form for each theatre which is to be 
visited by a salesman on one trip. In addition to the "book 
number" which will appear in the upper right hand corner, 
a "sheet number" will also be assigned. For example, 
if fifteen theatres are to be visited by a salesman on a trip, 
the individual theatre sheets will be numbered from one to 
fifteen, but the same book number will be shown on each of 
the fifteen sheets. 

In the lower right hand corner the branch should fill in 
the number under which the report is filed. 

The heading and all available data, down to and includ- 
ing "Special Information and Instructions to Salesmen" will 
be filled in at the branch office under the direction of the 
manager before the form is turned over to the salesman. 

The following code is to be used in tabulating "Status" 
data: 

Figures in parenthesis ( ) — rental prices on cancelled 
contracts. 

Figures preceded by a star * — rental prices on expired 
contracts. 

The letter "S" preceding figures — sold at that price. 
Figures without prefix indicate quotations which sales- 
men are to submit to exhibitors. 



—45— 



THEATRE FOLLOW UP CARD 
(Form 134andl34-A) 



The purpose of this record is : 

1. To keep a permanent theatre sales record. 

2. To have available all information which must be shown 

on SALESMAN'S ROUTE SHEET and visit re- 
ports, form No. 322. 

3. To establish a sales follow-up system. 

The form is used as described below : 

The top is divided into spaces representing the days of 
the month and the date of last visit. 

Provision is also made for the name of theatre, key num- 
ber, seating capacity, etc. 

Steel signals as described below #re used to carry out the 



follow-up system: 








Red 


for 


January 


or 


July 


Blue 


>V 


February 




August 


Yellow 


>> 


March 


» 


September 


Green 


>> 


April 


n 


October 


Black 


)) 


May 


») 


November 


White 


>> 


June 


)> 


December 



The first column headed "Salesman" is intended for the 

name of the salesman who has called on the theatre. 

The second column headed "Date of Visit" is self-ex- 
planatory. 

In the third column headed "Report No." enter the num- 
ber of the SALESMAN'S REPORT. (Form No. 322.) 

The entries in the balance of the columns under the 
various stars will be made in accordance with the in- 
formation called for in the fourth column : "Plan and No. 
Picture." The word "plan" refers to the sale, indicating 
whether sold as series (designated by S) or as a single pic- 
ture (designated by P) . Then the number of pictures sold is 
entered. When a single production is contracted for its 
number in the series should be specified, e.g., "P-2" means 
the second picture of a group. 

On the second line mention the number of days each re- 
lease is contracted for by the theatre, and the price, which is 
to be in code, e.g., "3-C.A." 



—46— 



Suppose a salesman calls on a theatre in March and 
advises that the exhibitor will be ready to discuss another 
contract about May 1st. You then place on the top of the 
card over the figure fifteen (15) a Green signal to indicate 
that the theatre is to receive attention about April 15th thus 
allowing ample time to close a contract. 

A yellow signal indicating March is put on the last 
column (date of last visit.) 

When a picture has been sold, this fact is noted on the 
cards of the opposition houses. Of course, any change in this 
condition will affect them. 

To be of actual assistance to the Manager this file must 
be referred to daily. 



—4?~ 



SHIPPING" 












shipper. Piled by shipping 
date 


shipper on day of shipment 


checks distribution sheet 
with pink copy of invoice. 
Gives invoice to book- 
keeper for approval. 


shipper 


Shipments noted on pink 
< # copies. Gives to 








IN AND OUT CLEEK 
























• 


In and Out Clerk 


necessary entries made 
from pink copies 


pink copies filed by ship- 
ping date 




BILLING 








Prepares invoices 
from forms 153 
and 154 


























| 

w 

I 

o 
n 










Receives invoices from 
biller, checks correctness 


Copies of invoices distrib- 


» 
k 






S 

c 
e 
PC 




Approves shipments as to 
open account or c.o.d., re- 
turns pink invoice to. . # >■ 










BOOKING 


Make bookings (memo) 


Notify exhibitor 


Exhibitor confirms, en- 
ter booking 








Prepares distribution 
sheet by shipping date 
and gives to ... . i>) 














OONTBAOT 




























1 
O 


214, 215 


247 or 149 


214, 215, 
153, 154 


«o 

t> 


(D 

fc- 


co 


267 or 815 


267 or 315 
and 76 


O) 
CO 

•d 

CS 
CO 


CO 


CO 

oa 


CO 

t- 






n I 1 i i 

H | M J 


w> j <o 1 C- j 00 j Ok | 
r-l J i-l | r< J H| 1-t J 


M 


= 1 


* j 







SHIPPING 






when film is returned pre- 
pare return slip and mark 
on distribution sheet. 


Give return slip to 








after all shipments are re- 
turned distribution sheet 
given to 






1 
O 

H 

§ 
8 










J 

M 
u 
« 

i 

OS 


Return shipments are en- 
tered 


Prepare "Delayed Film" 
memo, if necessary and 
submit to Manager 


If charge is made for ex- 
cess time, give memo to 


J 








BILLING 














1 












| 

to 
W 

§ 

o 

M 


ledger posted from blue 

copies 


Form "B" prepared from 
yellow copies and 
mailed out Saturday. 










i 

c 

c 
(X 


) 










! 

c 
pf 


l 

i 

> 
I 
















s 

c 
c 


> 

1 

> 
5 
) 


Files distribution sheet 
by date 




H 
O 

© 






















I 


69 and 76 


09 


« 

h 


75 and 367 
or 315 


to 


75 and 96 


tH 

00 
C3 


281 and 76 


267 or 315 


267 or 315 




1* 


\ » 1 « 


I s 




a 
o 


o 

CO 




ei 

CO 





—50— 



INDEX 



The Numbers Refer to Paragraphs 



A, Form 114, 
Abbreviations, ledger 68, 
Accessories, credits 89, 

Gratis 163, 
Inventory 150, 
Invoices 41, 87, 

Advance Payments 160, 

Advances 137, 138, 

Allowances 35, 39. 

B, Form 29, 45, 78 
Bad Debts 38, 121, 123, 
Bank Statements 101, 
Biller 23, 

Booking Eecord 30, 
Booking Sheets 23, 25, 
Bray Contract 13. 

0, Form 29, 43, 84, 

Cancellation Notice 3, 19, . 

Riders 14, 

Cash Book 92, 93, 

Cash Sale 88, 96, 

Censored Film 159, 

Change in Contract 16, 
of ownership 15, 
in payroll 164, 
of playing date 30, 

Charging off credit balance, 121, 
122, 

Cleaning Films, expense 140, 

C, O. D. 72, 112, 135, 158, 
Collections 73, 
Contracts 1, 

Analysis and Cut-off 
Sheet 22, 26, 29, 30, 
55, 102, 

Approved 9, 

Bray 13, 

Capitol Comedies 10, 
Changes 16, 
Detail 7, 
Expired 20, 
Ford 12, 55, 
Manxman 11, 
Mailing Notice 18, 
Memo 2, 4, 17, 
Payment 21, 102, 109, 

113, 115, 145, 
Payment forfeited 

121, 

Payment transferred 

119, 
Percentage 34, 
Coupons 108, 116, 161, 



Credit on B 82, 

Film 31, 35, 40, 

Posters 44, 89, 
Customer Balances 109, 

D, Form 65, 
Damaged Film 45, 

Deferred Playing Date 31, 32, 

35, 36, 37, 121, 
Delayed Film 51, 

Shipments 45, 
Distribution Sheet 26, 27, 46, 49, 

53, 64, 

Division Manager's Expense, 139 
Duplicate Charges 38, 121, 

E, Form 91, 
Egry 28, 41, 
Envelope 148, 

Error, customer charged in 118, 

Release credited in 118, 
Exhibition Date Notice 24, 149, 
Exhibitor's poster order 149, 
Expiration of Contract 20, 
Exploitation Expense 34, 
Express Charges 42, 45, 
Record 157, 
Return Book 45, 

P, Form 99, 

Film Credits 31, 35, 40, 

Condemned by Censor 159, 

Damaged 45, 

Inspection Slip 54, 

Invoice 27, 29, 

Return Slip 52, 54, 

Shipments 168. 
Ford Collections 63, 

Contracts 12, 55, 

Form "D" 65, 

Invoices 57, 60, 

Shipping Ticket 64, 

Subscription 98, 116, 145, 
Forms Prepared 75, 

G, Form 74, 102, 
Gratis Accessories 34, 163, 

Pictures 37, 

H, Form 31, 36, 74, 07, 117, 

I, Form 74, 108, 

In and Out Record 49, 50, 54, 64, 
Inspection, Film 54, 
Inter-branch shipments 153, 
Inventory of Accessories 150, 



Invoices, accessories 41, 87, 
and billing 28, 
Film 27, 29 
Ford 57, 60, 

J, Form 109, 
Journal entries 126, 

Key Numbers 25, 27, 29, 79, 146, 

L, Form 167, 
Ledger 66, 

Account Analysis 69, 

Entries 68, 

Abbreviations 68, 

Sheet 67, 
Local Conditions 6, 

Mail, Incoming 166, 
Manxman Contract 11, 
Miscellaneous Charges 42, 45, 

N, Form 129, 

Notice of Exhibition Dates, 24, 
149, 

Open Account 47, 
Opinion Report 165, 
Over Payments 118, 
Ownership Change 15, 

Payments made in advance 160, 
Payroll Changes 164, 
Percentage Contracts 34, 
Petty Cash 136, 

Pictures (number of 1918-1919) 8, 
Playing Dates 24, 

Changed 30, 
Deferred 31, 32, 
35, 36, 37, 121, 
Postage Book of Shipper 45, 
Charges 42, 45, 
Record 156, 
Poster Credit 44, 
Order 149, 



Preparation of Forms 75, 
Prints 167, 168, 

Protested Cheeks 73, 100, 134, 
Publicity Expense 141. 

Receipts and Vouchers 142, 147, 
Refunds 121, 124, 

Contract Payment 121, 
125, 

Release Credited in Error 118, 
Repeat Date Order 33, 
Request for Refund 151, 
Requisitions 152, 
Return Express Book 45, 

Film Slip 52, 54, 

Shipments 53, 

Salesmen 5, 

Route Sheet 169, 170, 
Salary Receipts 144, 
Shipments Delayed 45, 
Shipper's Postage Book 45, 
Shipping 46, 

Tickets 50, 
Skipped Releases 23, 
Statements 155, 
Substitutions 118, 127, 

Tax Reports 162, 

Theatre Follow Up Card 169, 170, 

Transfer Binder 23, 26, 

Contract Payment 119, 
Credit Balance to Con- 
tract Payment 120, 
To Other Branches 128, 

Traveling Expense 143, 

Vouchers and Receipts 142, 

Working Fund Reconciliation 

138. 



I 




